National mall footwear giant closes 82 stores as shoppers trade up

In a move that may surprise some consumers, one of America’s historic footwear giants, Caleres, is shifting its focus towards higher-priced products and closing stores at local malls. This strategic shift comes as the way we buy shoes continues to evolve, with a growing demand for versatile comfort over traditional stiff dress shoes, as highlighted in the US Men’s and Women’s Footwear Market Report.

Facing pressure from tariffs, inflation, and changing consumer preferences, Caleres is adapting to these challenges by betting on premium brands while scaling back its more affordable segment. The company, which owns popular brands like Famous Footwear, Sam Edelman, and Stuart Weitzman, reported a net sales increase of 8.5% year-over-year, with its premium brand portfolio seeing a significant boost in sales compared to its more affordable segment.

Caleres closed 82 stores over the last four years, reflecting a shift towards premium products and a focus on consumer well-being and longevity. This move aligns with a broader trend in the retail industry, where store closures are seen as a way to optimize profitability rather than a sign of imminent trouble.

The company’s “elevate-and-edit strategy” has been instrumental in driving growth, with a focus on premium, trend-forward brands like Jordan, Skechers, Birkenstock, New Balance, Reef, and Brooks. This strategy has resonated with consumers, leading to a nearly 50% increase in sales of elevated products.

As Caleres continues to refine its store fleet and invest in online and direct-to-consumer shopping, consumers can expect to see more shelf space dedicated to premium footwear, a continued closure of underperforming locations, and a shift towards higher-margin products. This strategic shift towards premium brands reflects a broader industry trend towards offering higher-priced products to meet changing consumer preferences.

Overall, Caleres’ focus on premium products and store optimization reflects a strategic shift in response to changing market dynamics and consumer behavior. By adapting to these trends, the company aims to stay competitive in a rapidly evolving retail landscape.